Skip to main content    

**2023 RUIA Tax Forms Available in myRRB - Read More...**

## Search

Search

**myRRB**

  

- Our Agency   - Agency Overview
  - Office of the Chairman     - Chairman
    - Chairman Staff Directory
  - Office of the Labor Member     - Labor Member of the Board
    - Labor Member Staff Directory
    - Pre-Retirement Seminars
    - Educational Materials
    - Questions and Answers
  - Office of the Management Member     - Management Member of the Board
    - Management Member Staff Directory
  - Office of Inspector General     - Office of Inspector General
    - Audit
    - Investigations
    - Hotline to Report Fraud, Waste and Abuse
    - Library
    - Whistleblower Protection Information
  - Organization Chart
- Benefits   - Retirement     - General Information
    - Downloadable Forms
    - myRRB
  - Survivor     - General Information 
    - Downloadable Forms
    - myRRB
  - Disability     - General Information
    - Downloadable Forms
    - myRRB
  - Unemployment     - General Information
    - Downloadable Forms
    - myRRB
  - Sickness     - General Information
    - Downloadable Forms
    - myRRB
  - Income Tax     - General Information
    - Downloadable Forms
    - myRRB
  - Medicare     - General Information
    - myRRB
  - En Español
  - myRRB
- Employers   - Employer Online Services     - ERSNet Login
    - EFTPS.gov
    - Pay.gov
  - Forms     - Rail 
    - Labor
  - Reporting Instructions     - Rail 
    - Labor 
    - Creditable Sickness
  - Publications     - Employer Exchange Newsletter
    - Program and Circular Letters 
    - Additional Information
- Resources   - Railroad Jobs
  - Legal Information     - Board Orders
    - The Federal Register 
    - Legal Opinions and Board Coverage Decisions
    - Partition of Railroad Retirement Annuities
    - Administrative Staff Manuals Index
  - Pay Debts Online
  - Office of Equal Opportunity     - Overview
    - EEO Policies
    - Filing A Complaint of Discrimination
    - No FEAR Act 
    - Frequently Asked Questions
  - RRBVision Video Library
  - Appeals
  - Railroad Retirement Handbook
  - FOIA Reading Room
  - Glossary of RRB Terms
- Financial & Reporting   - Agency Reports     - Inventories
    - Plans
    - Reports
  - Financial, Actuarial & Statistical     - Budget and Financial Reports: Current and Projected
    - Performance and Accountability Reports
    - Earnings Limits, Tax Rates and COLAs
    - Annual
    - Monthly & Quarterly RRA and RUIA Data
  - National Railroad Retirement Investment Trust     - NRRIT Introduction
    - Background Information
    - Reports
    - Correspondence
- Newsroom   - News Releases
  - Media Contact
- Field Office Locator
- FAQ

  

  

  

              -  Home 
              -  Labor Employer Reporting Instructions (LERI) 
              -  Part III - Principles of Service and Compensation 
              -                   Chapter 02: Employment Relation              

## Topics

-  Part I - Prerequisite Knowledge for Labor Employer Reporting 
-  Part II - Establishment of Employee Records 
-  Part III - Principles of Service and Compensation    -  Chapter 01: Service Months 
  -  Chapter 02: Employment Relation 
  -  Chapter 03: Creditable Maximum Compensation Amounts 
  -  Chapter 04: Taxable Compensation under the Railroad Retirement Tax Act (RRTA) 
  -  Chapter 05: Taxation of Compensation under the Railroad Unemployment Insurance Act 
-  Part IV - Particular Types of Compensation Payments 
-  Part V - Reports of Creditable Service and Compensation 
-  Part VI - Reports Related to Service and Compensation 
-  Part VII - Additional Communications about Service and Compensation Reports  
-  Part VIII - Employer Reporting System (ERS) Internet User Instructions 
-  Appendices 

 

LERI-Part III_CH 2
 

**Employment Relation Defined**

An employee generally has an employment relation beginning with the effective hire date and ending with the effective termination date. Service months may be credited only for months in which an employment relation is maintained. An employment relation is maintained during periods in which active service is not performed because of:
                        - furlough;  	 
                        - authorized leave of absence; or  	 
                        - continuous disability.

**Employment Relation Ends**

An employment relation ends when an employee:
                        - dies;  	 
                        - retires or receives a company pension;  	 
                        - is discharged;  	 
                        - resigns; or  	 
                        - relinquishes employment rights.

**Common Error in Reporting Service Months**

It is a common employer error to report service months after the employment relation has ended when a payment is made in a later month for earnings due. Payments earned in a prior period may be credited when paid, but service months are always credited when the service was performed. Service months can only be credited for months in which an employment relationship exists. An employment relation is an essential factor in crediting service months but is not a requirement in crediting compensation.

**Example of Correctly Reporting Service Months**

An employee retires in November. Earnings payments due are made in December and again in the following February. The payments made after November may be credited as compensation to November (or earlier months, if earned in earlier months) or to the months payments were actually made, but no service months are creditable after November. The employee is not entitled to service credit for December or February because the employment relation ended in November.

   

**‹** Chapter 01: Service Months
Up
Chapter 03: Creditable Maximum Compensation Amounts **›**

   

Acrobat ReaderAdobe's Access Website

**Railroad Jobs**

**Fraud Hotline**

**Field Office Locator**

 

(877) 772-5772
(312) 751-4701 
(312) 751-4300

 
Privacy PolicyPolicies & LinksSite MapContact UsRRB CareersWebsite Feedback

 
PlainLanguage.govData.govBenefits.govUSA.govRRB @ Data.govVote.gov

 
Freedom of Information ActNo FEAR Act DataOffice of Special CounselPlain Writing @ RRBOpen Gov @ RRBOffice of Inspector General

								Last updated: 06/15/2017